Zhango Liang, a 24-year-old from Fuzhou City, China, has been sentenced to 264 days in federal prison for his involvement in a fraud scheme involving counterfeit iPads. United States District Judge Rebecca L. Pennell also imposed three years of supervised release and ordered restitution of $326,000. Liang had previously served 101 days on related charges in Skagit County, Washington.
Court documents reveal that the scheme began in the summer of 2023 when Liang was approached by a friend with a job offer to use gift cards for purchases at Target stores. In December 2023, he was instructed to return counterfeit iPads to the stores. Liang purchased authentic iPads, replaced them with counterfeits, and returned them for refunds on Target gift cards. He then used these gift cards to buy more items from Target, continuing the cycle.
Between January and June 2024, Liang returned at least 140 iPads and received approximately $163,000 in refunds. The total loss to Target was around $326,000 as they lost both the authentic products and reimbursed the purchase amounts.
Acting U.S. Attorney Richard R. Barker stated: "Mr. Liang participated in a calculated scheme that exploited retail return systems for substantial personal gain." He added that such frauds undermine commerce integrity and affect consumers by increasing prices.
Matthew Murphy, Acting Special Agent in Charge of ICE Homeland Security Investigations Seattle said: "Today’s sentencing delivers a message: individuals who engage in sophisticated fraud schemes will be aggressively pursued and held accountable."
Liang's co-defendant Linda You has pleaded guilty to a fraud charge and is scheduled for sentencing on June 23, 2025.
The case highlights collaboration between federal and state law enforcement agencies like Homeland Security Investigations and the Washington Attorney General’s Office Organized Retail Crime Task Force.
Assistant United States Attorney Jeremy J. Kelley prosecuted this case following its referral by the Skagit County Prosecuting Attorney’s Office.
